Mortgage delinquencies change slightly

The Mortgage Bankers Association's delinquency report found delinquencies on residential mortgages declined in the third quarter of 2011, and TransUnion forecasts these delinquencies will rise before falling again in 2012.

TransUnion's annual forecast predicts mortgage loan delinquencies will increase to 6.02 percent in the first quarter of 2012, then drop to 5 percent by the end of 2012, suggesting a slow down in foreclosures.

"Although house prices and unemployment will likely face continued pressure next year, this forecast calls for gradual improvements in the second half of 2012 to other key variables, like improving credit quality of new originations, consumer confidence and GDP, that will positively influence homeowners' ability and willingness to pay their mortgages," said Tim Martin, group vice president of U.S. housing in TransUnion's financial services business unit.

TransUnion expects 38 states to experience a decline in mortgage delinquencies, with Arizona to report a 46.25 percent drop, Wisconsin to fall 45.52 percent and Colorado decrease 40.34 percent.

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